Published: Feb. 11, 2014

Michigan total taxes on fuel among highest in region

Contact(s): Steven Miller Agricultural, Food and Resource Economics office: (517) 355-2153 cell: (517) 755-3933, Andy Henion Media Communications office: (517) 355-3294 cell: (517) 281-6949

While Michigan has a comparatively low gas tax, the addition of the state sales tax means motorists are actually paying some of the highest fees in the region, according to Michigan State University’s Center for Economic Analysis.

The state’s total tax on gasoline is about 39.1 cents per gallon, on par with Illinois as the highest in an eight-state area of the Midwest.

Michigan’s total tax on diesel is 38.5 cents per gallon, third highest in the area.

Proponents of raising taxes to come up with more funding to fix Michigan’s crumbling roads and bridges point to the fact that the state has one of the lowest state excise taxes on fuel.

The state excise tax on gasoline is 19 cents per gallon, third lowest in the region. Its excise tax on diesel is 15 cents per gallon, lowest in the region.

But when other fees and taxes such as the sales tax are factored in, the total tax burden more than doubles for both gasoline and diesel, making Michigan’s rates some of the highest in the Midwest.

The states included in the analysis are Illinois, Indiana, Iowa, Michigan, Minnesota, Missouri, Ohio and Wisconsin.

The one-page report from the Center for Economic Analysis is available here. For more information, contact the center’s director, Steven Miller, at (517) 355-2153 or

A report led by Steven Miller, director of MSU's Center for Economic Analysis, says Michigan motorists pay some of the region's highest fuel taxes.

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